This excerpt taken from the HGSI DEF 14A filed Mar 24, 2009.
The Amended and Restated Stock Incentive Plan allows the Compensation Committee to grant either awards of incentive stock options as that term is defined in section 422 of the Internal Revenue Code or nonqualified stock options. Incentive stock options, however, will be available only for employees of the Company or any of its subsidiaries. All options must have an exercise price per share that is not less than 100% of the fair market value of a share of Common Stock on the date of grant. The Amended and Restated Stock Incentive Plan clarifies that fair market value means the official closing price per share on an applicable date as quoted on The NASDAQ Stock Market, foreclosing any ambiguity relating to trading that occurs after the close of regular market hours. As of March 13, 2009, the fair market value of a share of the Common Stock was $0.71.
No stock option granted under the Amended and Restated Stock Incentive Plan may have a term longer than 10 years. The option exercise price may be paid in cash, by tender of shares of Common Stock, by a combination of cash and shares or by any other means the Compensation Committee approves.